Trading with OBV - for Beginners only !!

[mohan.sic]

Mohan ji !!!

Entire YTC is based on price chart using PDH,PDL,PDC, etc...

OBV PDC is working for intraday ...

Yes !! OBV got its own limitation with respective to Daily charts !!!

Xray garu,

I am just trying to understand the method that will be followed here.

Anyway, i must admit that i have predetermined views against these methods ( pdc, 2pdc) I don't believe that these will work consistently in every market condition.

Please note - this is not about OBV.
OBV has its limitations and that's a different thing.

This is about using a indicator ( obv in this case ) with rules such as 2 pdc, 3 pdc etc.

If you see 40% failure trades in OBV 2 pdc method - what would you conclude in this case ? Is this failure because of OBV limitations ?

Please understand the above failure is not only due to Limitations of OBV. It is due to the method followed ( 2pdc ).

 

[XRAY27]

Xray garu,

I am just trying to understand the method that will be followed here.

Anyway, i must admit that i have predetermined views against these methods ( pdc, 2pdc) I don't believe that these will work consistently in every market condition.

Please note - this is not about OBV.
OBV has its limitations and that's a different thing.

This is about using a indicator ( obv in this case ) with rules such as 2 pdc, 3 pdc etc.

If you see 40% failure trades in OBV 2 pdc method - what would you conclude in this case ? Is this failure because of OBV limitations ?

Please understand the above failure is not only due to Limitations of OBV. It is due to the method followed ( 2pdc ).

First of all PDC of OBV on the close for bias bullish or bearish , also Price action at important area PDH,PDC of Price,PDL,2PDH,2PDL...as i said i will react to this area irrespective of OBV ...why

My understanding of Price volume study on about 1000 charts telling is price attracts volume and volume propels price

so note that i'm not totally dependent on OBV as sole factor..

And regarding method on 1 min or ribbons i don't use !!!

 

[mohan.sic]

First of all PDC of OBV on the close for bias bullish or bearish , also Price action at important area PDH,PDC of Price,PDL,2PDH,2PDL...as i said i will react to this area irrespective of OBV ...why

My understanding of Price volume study on about 1000 charts telling is price attracts volume and volume propels price

so note that i'm not totally dependent on OBV as sole factor..

And regarding method on 1 min or ribbons i don't use !!!

What is the correlation between your Price and volume understanding & OBV 2 pdc method.

I mean, why did you bring your volume understanding into this picture . It will be clear with an example.

 

[wisp]

Confusion is because i dint even expect that last 2 days data values are being used to analyze today's market. And moreover current days OBV value is not brought into picture in analyzing current day's bias. very unusual.

But it is brought into picture! but at a lower level, similar to trading in direction of htf price action, here trading in direction yday and daybefore yday OBV close

 

[Smart_trade]

I find that OBV is a great tool which helps in Daytrades as well as swing and position trades such as daily timeframes.

I suggest people to do their own backtest to see whether OBV helps in their system or it does not help. Basing our views either on some personal bias or bias created by someone else's study may make us reject a great tool for our trading.

I wont go into details of whether bands work or PDC works or zones work, what timeframes etc....I am sure people can find that out themselves.For me the matter is settled...it is a great tool when combined with my existing trading method.

Smart_trade

 

[mohan.sic]

But it is brought into picture! but at a lower level, similar to trading in direction of htf price action, here trading in direction yday and daybefore yday OBV close

sorry then, dint notice that post where it was brought into picture. Please give the post no and i will go through.

To simplify what you said - If yesterday and day before yesterday were positive - Today's bais will be positive right ?

 

[wisp]

sorry then, dint notice that post where it was brought into picture. Please give the post no and i will go through.

To simplify what you said - If yesterday and day before yesterday were positive - Today's bais will be positive right ?

No, Not like that..

If today's Obv PDC is above yesterday's OBV PDC, then bias is long......then we bring in today's OBV into picture and take entry whenever today's OBV turns UP. This is my understanding, its vijkris idea, so I request vijkris ji to please corect if I am wrong!

 

[wisp]

I find that OBV is a great tool which helps in Daytrades as well as swing and position trades such as daily timeframes.

I suggest people to do their own backtest to see whether OBV helps in their system or it does not help. Basing our views either on some personal bias or bias created by someone else's study may make us reject a great tool for our trading.

I wont go into details of whether bands work or PDC works or zones work, what timeframes etc....I am sure people can find that out themselves.For me the matter is settled...it is a great tool when combined with my existing trading method.

Smart_trade

Thanks Da,

May I add, if one's own system is working and giving profits, enjoy it. If introducing OBV has upset the apple cart (not due to OBV's fault, but due to our own understanding or misunderstanding ) by reducing profit, giving loss or increasing loss, then leave OBV for those for whom OBV is working and get back to one's own system that works.

Everything is not for everyone! XRAY bhai spent many hours trying to teach me D&S, but it never worked for me because for whatever reason I just could not make it to work for me, however XRAY bhai is playing it beautifully and enjoying great profits! One can't play every instrument in the band!

 

[mohan.sic]

No, Not like that..

If today's Obv PDC is above yesterday's OBV PDC, then bias is long......then we bring in today's OBV into picture and take entry whenever today's OBV turns UP. This is my understanding, its vijkris idea, so I request vijkris ji to please corect if I am wrong!

when obv turns up ? Turn's up what ? It keeps turning through out the day.
please be specific or leave it to vijkris.


Anyway, Pls give the post no where it is brought into picture as said by you.
I will go through.

 

[XRAY27]

Thanks Da,

May I add, if one's own system is working and giving profits, enjoy it. If introducing OBV has upset the apple cart (not due to OBV's fault, but due to our own understanding or misunderstanding ) by reducing profit, giving loss or increasing loss, then leave OBV for those for whom OBV is working and get back to one's own system that works.

Everything is not for everyone! XRAY bhai spent many hours trying to teach me D&S, but it never worked for me because for whatever reason I just could not make it to work for me, however XRAY bhai is playing it beautifully and enjoying great profits! One can't play every instrument in the band!

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